Lending on real estate transactions can be one of the best investments for beginners.
What about stocks?
Investing money into the stock market can be very exciting and rewarding, it is also extremely risky. When buying stocks, you’re taking an equity position in a company over which you have absolutely no control. Then all you have left to do is hope that you’ve bought at the right time and the shares will increase in value before you need to sell them.
If the company in which you’re a shareholder goes out of business, as an equity investor you’ll be paid last…if at all. When a corporation goes bankrupt, it is the debt investors or bondholders who are always paid first. Even if a company doesn’t go into bankruptcy, the value of its shares are always affected by news events, earnings reports, and a number of other factors all beyond your control.
Real Estate Lending Is One of The Best Investments for Beginners
When you’re lending money on real estate transactions, your capital is protected and secured by real property. Earning double-digit returns when lending your money to a professional real estate investing company is definitely one of the best investments for beginners. Of course, not every opportunity is a “good deal”, and we have built our company on a stable foundation knowing our numbers. If the numbers don’t make sense to us, they certainly won’t make sense to our lenders.
You’ve likely bought a house before with a bank, or are at least aware of the process.
In that pile of paperwork are several documents including:
The legal instrument detailing how much you owe the lender and the repayment terms.
Also known as a Mortgage Deed
It’s a legal document that gives a mortgage lender a lien position in a piece of mortgaged property. That lien position gives the lender the right to foreclose if you fail to make payments. Additionally, the publicly filed lien ensures that the property can’t be sold without paying the bank first.
This is the insurance policy that names your bank as the loss payee in the event of a covered claim.
Once these documents are provided to the title agency or escrow attorney, you receive the keys to the home. We never directly handle your money and you’ll never send us a check. Everything goes through escrow…just like when you bought your house. As our lender, your name will be on the three documents described above when we close escrow.
Through private money lending, you can become the bank!
You may not realize it, but you’re already lending money on real estate transactions. Your lending just doesn’t pay you very much! Your checking and savings accounts will pay you 0.25-1% on the money deposited, which your bank is then happy to lend on a mortgage for 5% or more. Banks reap massive profits on lending money that doesn’t even belong to them! We just want to help you cut out the middleman and increase your income.
Lending on the projects of a professional residential redeveloper is an amazing way to generate cash flow and produce a predictable income stream. At the same time, providing excellent security and safety for your principal investment. You can do what the banks have been doing for years…make a profitable return on investments backed by real estate. There is no other investment vehicle like it! I’m sure you’ll agree that lending money on House Market Solutions’ projects is one of the very best investments for beginners.